Retailers are responding to the latest major sector shift, with November fast becoming the dominant month for consumer spending in Australia. 

As reported by the Australian Financial Review, November 2023 saw a new sector milestone, with consumers collectively spending a record $36.5 billion in retail spending, a 2.2% increase compared with November 2022.  

Realmark’s retail sales and leasing team, led by director Michael Richardson, said the trends create challenges and opportunities for retailers thanks to sales inspired by a decades-old US tradition. 

“The landscape of traditional retail has been forever changed by Black Friday and Cyber Monday sales,” said Mr Richardson. 

“This shift has progressively reshaped consumer behavior, influencing the distribution of retail wealth throughout November and December.”  

According to AMP Chief Economist Shane Oliver, November is set to overtake December in about five years for total spending on non-food retailing.  

“The Black friday sales are getting longer and longer, with some retailers now referring to Black November,” Mr. Oliver said. 

“Given the growth and popularity of Black Friday sales, [the crossover] could speed up as more and more retailers cotton on to it, and it becomes the predominant sales event as opposed to Boxing Day sales.” 

However, this sales upturn often comes with challenges for retailers, like reduced profit margins due to discounts, higher operational costs, competitive pricing, and increased marketing expenses. 

However, the boost in sales can offset the variance. 

Responding to market shifts, Mr. Richardson highlights the importance of adaptability and innovation for retailers and the need for a flexible approach to property management and development to support changing requirements. 

“The retail sector is in a constant state of evolution, and embracing these changes, rather than fearing them, is crucial in today's environment,” he said. 

“For years, there were concerns that the internet would render bricks-and-mortar stores obsolete. 

“However, the reality is that the most successful retailers have learned how to seamlessly integrate physical stores with online platforms and factory outlets, ensuring they maximise their stock turnover throughout the year,” he said. 

This adaptability has enabled savvy retailers to thrive amidst technological advancements and changing consumer preferences.  

As a result, formerly bustling shopping hubs like Hay and Murray Street malls are experiencing a shift as they adjust to the rise of regional centers, factory outlets, and online shopping. 

The once centralised shopping experience is diversifying, challenging not only retailers but also investors, property managers, and developers to innovate and adapt in this ever-changing landscape. 

Realmark Commercial don’t just understand property, they know the retail sector in WA and nationally. 

For tailored insights and advice, please don't hesitate to contact Michael Richardson on 0423 758 870.